A former supervisor of the Ulster County town of Shandaken has been indicted on charges that he secretly funneled $50,000 in public money through a nonprofit loan committee to bankroll a personal loan for himself. Peter DiSclafani, a 68-year-old Ulster County resident who lost the Democratic primary on November 4, 2025, and left office in December 2025, was arraigned on grand larceny and official misconduct charges tied to a transfer state auditors uncovered during an audit of the town’s books.
Charges Stem From a 2024 Transfer
According to the Times Union, officials say DiSclafani was charged with grand larceny in the third degree as a crime of public corruption, along with two counts of official misconduct. Investigators allege that in May 2024, DiSclafani transferred $50,000 in town funds to the Shandaken Area Revitalization Project, or SHARP, without informing the Town Board or securing its authorization. SHARP then issued him a $50,000 check just two days later, according to the same report.
DiSclafani had applied for and received that loan from SHARP, a not-for-profit corporation that administered loans under federal grant programs, with the town paying the organization to manage the lending on its behalf, per The Overlook. He sat on SHARP’s board by virtue of his position as town supervisor, putting him on both sides of the transaction investigators now describe.
Auditors Say the Numbers Didn’t Add Up
An examination of SHARP’s bank account showed the committee would not have had enough money to issue DiSclafani’s check had he not transferred the town funds first, the station’s report notes. State Comptroller Thomas P. DiNapoli said DiSclafani allegedly used his position to loan himself town funds for personal benefit, a characterization that frames the case as one of public officials policing their own self-dealing.
DiNapoli’s auditors discovered the $50,000 town payment to SHARP during an audit of the town’s finances, not through any complaint or tip. Officials allege DiSclafani never disclosed the loan to any Town Board member between applying for it in May 2024 and leaving office in December 2025, and that he made no loan payments before the transfer was flagged.
Town Board Cut Ties With SHARP
The Shandaken Town Board moved to sever its relationship with SHARP after the arrangement came under scrutiny, though accounts of the exact date differ: the Daily Freeman reports the board voted to end its contract with SHARP on May 3, 2025, while the Times Union account places that vote on May 5, 2025. Either way, the board also tasked DiSclafani with identifying outstanding SHARP loans funded by town money and arranging repayment to the town, according to the same reporting.
SHARP’s own financial footprint had shrunk well before the dispute surfaced. The Overlook reported that the most recent annual return it could locate for the organization covered the fiscal year ending June 30, 2013, showing $84,577 in revenue against $189,355 in expenses. The IRS automatically revoked SHARP Committee Inc.’s 501(c)(3) tax exemption effective November 15, 2016, after three consecutive years without required filings, per the same outlet.
DiSclafani’s Response and What Comes Next
DiSclafani told the Times Union he “took a loan out with a committee” but declined to comment further. The Overlook reported that he denied transferring town money to finance the loan and said he instead spent the money on a geothermal heating system for his home — an account that conflicts with the allegations laid out by officials and has not been otherwise resolved in the reporting reviewed here.
Ulster County District Attorney Emmanuel C. Nneji said public service conflicts with self-dealing and requires public officers to act properly even when unobserved. DiSclafani was arraigned in Ulster County Court before Judge Bryan Rounds and is due back in court on January 7, 2027, according to the Daily Freeman. As with any pending case, DiSclafani is presumed innocent unless and until proven guilty, as Yonkers Times also noted in its coverage of the indictment.
